If You Majored in One of These 18 Subjects, You’ll Likely Have a Comfortable Retirement
Written by
David Nadelle
Edited by
T. Woods
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Attending college can offer numerous financial, health and social benefits, but nothing can guarantee those things. However, according to a new study by professors Frank Smith and Ajay K. Aggarwal, “Debt is the most important factor overall in determining whether a household will have enough retirement savings.”
Analyzing 45 college majors across five categories — medical and life science, visual and performing arts, engineering and technology, liberal arts and business — Smith and Aggarwal found college degrees that lead to high starting salaries often put their graduates in the best position later in life.
According to their “College Education and a Comfortable Retirement” paper, the researchers determined that a millennial couple would need a $290,000 nest egg by the age of 65 to retire comfortably (if they live to around 80).
To achieve the $290,000 baseline, graduates would need a minimum starting income of $48,500, without debt, to reach that desired quality of life in retirement goal. Of the 45 majors reviewed within the five broad categories, 18 had a starting pay above the minimum $48,500 with a debt level of zero.
Not all college grads will find success, just as many people who never attend college go on to achieve happy, prosperous lives and maintain a high quality of life in their retirement years. Individuals have their own unique set of circumstances that will dictate their financial futures, and how one handles their debt plays such a crucial role throughout one’s life.
However, here are 18 school majors that may give a graduate a leg up when it comes to planning a comfortable retirement, according to Smith and Aggarwal’s study.
Business
1. Construction Management: $52,740
2. Data Science/Analytics: $53,370
3. Finance: $50,040
4. Management Information Systems (MIS): $54,000
5. Supply Chain (Logistics): $52,290
Engineering and Technology
6. Aerospace Engineer: $62,910
7. Astronomy/Physics: $54,630
8. Biomedical Engineer: $60,030
9. Chemical Engineer: $65,520
10. Civil Engineering: $54,810
11. Computer Science: $61,740
12. Electrical Engineer: $63,540
13. Energy Science: $57,600
14. Materials Science: $62,550
15. Mathematics: $51,750
16. Mechanical Engineer: $60,120
Medical and Life Science
17. Nursing (Registered Nurse (RN)/Bachelor of Science in Nursing (BSN): $54,800
18. Pharmacy: $71,640
Liberal Arts
No liberal arts majors, including history, political science and journalism, start at a sufficient pay level to have a 50/50 chance of not outliving their money in retirement, even with no college debt, per the study.
Visual and Performance Arts
Even with no debt, no major graduates from a visual and performance arts program would have the requisite starting salary to make the required retirement numbers.
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